When considering buying a home from the Cuyahoga Land Bank, you should:

Consider what kind of home you can afford:

In general you can afford a home worth about three times your annual household income. If your combined income is $50,000, you could afford a $150,000 home.

The amount of debt you have, the size of the down payment you can make (average is 3-20% of the total cost of the home) and your credit score will all have an affect on how much home you can afford

Consider how much you would like to pay each month:

Your monthly payments will probably be 0.75% to 1.15% of the purchase price. On a $150,000 home that's $1125 to $1725/mo. This includes taxes and insurance.

The bigger your down payment, the lower the monthly payments.

The lower the interest rate, the lower the monthly payments.

The longer the loan, the lower your monthly payments. The shorter the loan, however, the less overall interest you pay - if you can afford the higher payments.

Consider the amount of money you will need up front:

3% to 20% of the purchase price for a down payment. The actual amount depends on what kind of loan you get and how good your credit is.

1% to 8% of the purchase price for closing costs. You might not have to pay this up front. The bank might be willing to add it to your mortgage.

$250 to $800 in miscellaneous costs. These are things like the application fee for the loan, the fee for the bank to run your credit report, professional inspection of the home, and an appraisal (if you can't get the appraisal added to the closing costs).

Select a home that meets your needs from the list above.

Qualify for a mortgage:

Generally, you need four things in order to qualify for a mortgage:

Money to make the down payment.

Income that's 2 to 3 times higher than your mortgage payment.

Two years of solid employment history (same job or field).

Decent (not perfect) credit.

There are programs available to assist first time homebuyers as well as those who may be struggling with one or two of the pre-qualifiers above:

If you need help learning about available assistance programs or need a referral to a qualifying bank in order to obtain a mortgage, contact the Cuyahoga Land Bank at (216) 698-8853.

Select a title company or ask your mortgage lender to help you select one.

Make us an offer and, once it is accepted, sign a contract with the Cuyahoga Land Bank.

Once the Land Bank has accepted your offer, you will have to complete the process of obtaining your mortgage by:

Completing an appraisal

Completing an inspection

Finding an insurance agent and obtaining home insurance (the cost of the insurance will be added to your closing costs)

Closing

You go to the office that's handling the closing (usually the title company) to take care of the paperwork. You'll owe some money, such as the down payment, and closing costs unless those were rolled into the mortgage. You've either already arranged with your bank to wire the funds to the closing company, or you bring a bank check with you to closing. You don't need to get a check for the mortgage loan; the bank will wire that directly to the office handling the closing.

Move in

Be happy! (The described steps for purchasing a home may vary depending on a buyers individual circumstances.)

To begin the process of purchasing a renovated home, click the property photo above to find the contact information for the listing agent.